All compensated tax return preparers are required to register under the new registration system and get a PTIN before preparing returns in 2011. Individuals who currently possess a PTIN will need to reapply under the new system but generally will be reassigned the same number.
Registration fee is $64.25, regardless of whether you currently possess a PTIN or not. Attorneys, Certified Public Accountants (CPAs), and Enrolled Agents (EAs) are not exempt.
Link to the New Registration System
Paid Preparers should apply for or renew their PTINs before January 1st, 2011.
Tuesday, September 28, 2010
Wednesday, September 22, 2010
Small Business Jobs Bill of 2010 (HR-5297)
The Senate passed the Small Business Jobs Act of 2010. The House is set to vote on the bill where its expected to pass.
The following provision is included in the Bill...
1. One-year extension of the 50-percent bonus depreciation provision for qualified property placed in service during 2010.
2. Increase Section 179 expense deduction for 2010 and 2011 to $500,000, combined with an increase in the phase out threshold to $2 million.
Will keep you posted on the developments....
The following provision is included in the Bill...
1. One-year extension of the 50-percent bonus depreciation provision for qualified property placed in service during 2010.
2. Increase Section 179 expense deduction for 2010 and 2011 to $500,000, combined with an increase in the phase out threshold to $2 million.
Will keep you posted on the developments....
Monday, August 9, 2010
Late filing Penalty for S Corp
Time is running out and the tax returns for S Corporation are due soon.
The final deadline to file S Corp tax returns (Form 1120S) is September 15th, 2010 if an extension was requested.
S Corporation's no longer enjoy the luxury to file late and not pay the penalty. One of the recent changes by the IRS is charging penalty on late filing of the S Corporation tax returns.
For tax years beginning after 2009, the late filing penalty for an S corporation return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year
So for a S Corp with two or more stockholders this penalty could add up to an exhorbitant amount.
Relief from penalty is available only if the S Corp shows that the late filing was due to reasonable cause.
The final deadline to file S Corp tax returns (Form 1120S) is September 15th, 2010 if an extension was requested.
S Corporation's no longer enjoy the luxury to file late and not pay the penalty. One of the recent changes by the IRS is charging penalty on late filing of the S Corporation tax returns.
For tax years beginning after 2009, the late filing penalty for an S corporation return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were shareholders in the corporation during any part of the corporation's tax year
So for a S Corp with two or more stockholders this penalty could add up to an exhorbitant amount.
Relief from penalty is available only if the S Corp shows that the late filing was due to reasonable cause.
Late Filing Penalty for Partnership
Time is running out and the tax returns for partnership are due soon.
The final deadline to file partnership tax returns (Form 1065) is September 15th, 2010 if an extension was requested.
Partnership no longer enjoy the luxury to file late and not pay the penalty.
For tax years beginning in 2009, the late filing penalty for a partnership return is $89 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year.
For tax years beginning after 2009, the late filing penalty for a partnership return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year.
So for a partnership with two or more partnership this penalty could add up to an exhorbitant amount.
Relief from penalty is available only if the partnership shows that the late filing was due to reasonable cause.
The final deadline to file partnership tax returns (Form 1065) is September 15th, 2010 if an extension was requested.
Partnership no longer enjoy the luxury to file late and not pay the penalty.
For tax years beginning in 2009, the late filing penalty for a partnership return is $89 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year.
For tax years beginning after 2009, the late filing penalty for a partnership return is $195 for each month or part of a month (up to 12 months) the return is late (or does not contain the required information) multiplied by the total number of persons who were partners in the partnership during any part of the partnership's tax year.
So for a partnership with two or more partnership this penalty could add up to an exhorbitant amount.
Relief from penalty is available only if the partnership shows that the late filing was due to reasonable cause.
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